KLP Kapitalforvaltning AS Boosts Stock Holdings in Microchip Technology Incorporated $MCHP

Key Points

• KLP Kapitalforvaltning AS increased its holdings in Microchip Technology by 3.9% in Q2, owning 188,280 shares worth approximately $13.25 million.
• Several institutional investors, including Mechanics Financial Corp and Pinnacle Bancorp Inc., have also raised their stakes in Microchip Technology during the same quarter.
• Analyst ratings for the company show a consensus of "Moderate Buy" with a price target averaging $75.75, while recent earnings showed a decline in revenue compared to the previous year.

KLP Kapitalforvaltning AS grew its position in shares of Microchip Technology Incorporated (NASDAQ:MCHP - Free Report) by 3.9% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 188,280 shares of the semiconductor company's stock after buying an additional 7,000 shares during the quarter. KLP Kapitalforvaltning AS's holdings in Microchip Technology were worth $13,249,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in the company. Mechanics Financial Corp increased its holdings in Microchip Technology by 3.4% in the 2nd quarter. Mechanics Financial Corp now owns 5,014 shares of the semiconductor company's stock valued at $353,000 after acquiring an additional 167 shares during the last quarter. Global X Japan Co. Ltd. increased its holdings in Microchip Technology by 0.4% in the 2nd quarter. Global X Japan Co. Ltd. now owns 45,705 shares of the semiconductor company's stock valued at $3,216,000 after acquiring an additional 174 shares during the last quarter. Pinnacle Bancorp Inc. increased its holdings in Microchip Technology by 18.9% in the 2nd quarter. Pinnacle Bancorp Inc. now owns 1,206 shares of the semiconductor company's stock valued at $85,000 after acquiring an additional 192 shares during the last quarter. Grimes & Company Inc. increased its holdings in Microchip Technology by 4.3% in the 2nd quarter. Grimes & Company Inc. now owns 5,237 shares of the semiconductor company's stock valued at $369,000 after acquiring an additional 217 shares during the last quarter. Finally, Clearstead Trust LLC increased its holdings in Microchip Technology by 10.5% in the 1st quarter. Clearstead Trust LLC now owns 2,356 shares of the semiconductor company's stock valued at $114,000 after acquiring an additional 224 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Analyst Ratings Changes

MCHP has been the topic of a number of research reports. Zacks Research downgraded shares of Microchip Technology from a "strong-buy" rating to a "hold" rating in a report on Monday, August 18th. Citigroup lifted their price target on shares of Microchip Technology from $68.00 to $90.00 and gave the company a "buy" rating in a report on Monday, July 7th. Piper Sandler lifted their price objective on shares of Microchip Technology from $65.00 to $80.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. Wells Fargo & Company assumed coverage on shares of Microchip Technology in a research note on Monday, September 15th. They issued an "equal weight" rating and a $60.00 price objective for the company. Finally, Wall Street Zen raised shares of Microchip Technology from a "sell" rating to a "hold" rating in a research note on Friday, June 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $75.75.

Microchip Technology Price Performance

MCHP stock opened at $66.92 on Thursday. Microchip Technology Incorporated has a 12 month low of $34.13 and a 12 month high of $79.44. The company has a current ratio of 2.31, a quick ratio of 1.33 and a debt-to-equity ratio of 0.80. The company has a 50-day moving average price of $65.41 and a 200 day moving average price of $60.86. The stock has a market cap of $36.12 billion, a PE ratio of -196.82, a P/E/G ratio of 1.86 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. Microchip Technology had a negative net margin of 3.50% and a positive return on equity of 6.24%. The firm had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.05 billion. During the same period in the previous year, the company earned $0.53 EPS. The firm's revenue for the quarter was down 13.3% compared to the same quarter last year. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. Equities research analysts anticipate that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Friday, August 22nd were paid a dividend of $0.455 per share. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.7%. Microchip Technology's payout ratio is currently -535.29%.

Insider Transactions at Microchip Technology

In related news, Director Matthew W. Chapman sold 10,000 shares of Microchip Technology stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $68.25, for a total transaction of $682,500.00. Following the completion of the transaction, the director directly owned 30,665 shares of the company's stock, valued at approximately $2,092,886.25. The trade was a 24.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO James Eric Bjornholt sold 7,356 shares of Microchip Technology stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $68.72, for a total transaction of $505,504.32. Following the transaction, the chief financial officer directly owned 30,010 shares of the company's stock, valued at approximately $2,062,287.20. This represents a 19.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.94% of the stock is currently owned by insiders.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.

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